By Zhang Mengying
Investing.com – Oil was down on Monday morning in Asia over tight supplies and concerns about slowing economic growth and fuel demand. It slid 6% during the previous session.
Brent oil futures fell 0.24% to $112.85 by 12:11 AM ET (4:11 AM GMT) and crude oil WTI futures edged down 0.19% to $107.78.
“For the moment, disruptions to oil supply are taking a back seat to concerns of weaker demand,” ANZ analysts said in a note.
“The fundamental picture remains one of tightness amid the ongoing slowdown in Russian output.”
The tight supply remained a concern as the West imposed sanctions on Russian oil. But the impact has been mitigated by the move led by the U.S. to release strategic petroleum reserves and a ramp-up of production from the Organization of the Petroleum Exporting Countries and allies (OPEC+).
“If Washington sticks to its current pace, the U.S. strategic reserve will hit a 40-year low of 358 million barrels by October,” ANZ analysts added in the note.
In Libya, oil production remained volatile over the blockades by groups in the country’s east. The Libyan oil minister Mohamed Oun told Reuters on Monday that the country’s total production is at about 700,000 barrels per day (bpd). Last week, Libya’s oil output was at 100,000-150,000 bpd.
Adding to concerns about the tight supply, oil product exports from China continued to decline.
Chinese customs data showed on Saturday that the country’s gasoline exports dipped 45.5% year-on-year and diesel exports plunged 92.7% despite stalling domestic demand.